One of the first questions you are likely to ask when applying for a home loan is “how much deposit will I need?”
Most lenders will finance up to 95% of the value of the home that you are buying, however any loans of more than 80% of the value of the home will require the applicant to purchase lenders mortgage insurance so ideally, you should try to save up to 20% of the value of the house to avoid this.
For example, if you are looking for a home that is valued at $300,000.00 you will need a home deposit of $60,000.00 to avoid lenders mortgage insurance.
If 20% of the value of the home loan seems unachievable, the closer to the 20% figure that you can get – the better. In addition to lower repayment costs when you have a larger deposit, you will save on lenders mortgage insurance for any deposit larger than 5% that you can get together. For example, you will pay much less lenders mortgage insurance if you have a 15% deposit than you would if you have a 5% deposit.
If you are having trouble working out how much of a home deposit you will need, you can call our Customer Relationship Centre on 13 25 85 and ask to speak to a home loan consultant, who will be happy to answer any questions that you have.
Lenders Mortgage Insurance
Lenders mortgage insurance is a mandatory cost for loan applicants that are looking to borrow more than 80% of the value of the home that they are purchasing. Lenders mortgage insurance can protect you if you are unable to meet your mortgage repayments and your house needs to be sold.
The cost of lenders mortgage insurance varies depending on the size of the home deposit that you have saved when you submit the application.
The larger your deposit, the more you will save on lenders mortgage insurance for any deposit larger than 5% that you can get together. For example, you will pay much less lenders mortgage insurance if you have a 15% deposit than you would if you have a 5% deposit.
Mortgage Protection Insurance
Mortgage protection insurance covers your Beyond Bank mortgage repayments, and gives you peace of mind should the worst happen. You can rest easy knowing you have done your part to protect yourself.
Find out more about Beyond Bank Mortgage Repayment Insurance.
Stamp duty is a tax set by each state or territory government that is imposed on the purchase of real estate. You are legally required to pay stamp duty within 30 days of settlement on the property.
You can follow this link to calculate your stamp duty costs, as well as the cost of your transfer fee and registration fee.